Celsius Sues BitMex for $495 Million Over Alleged Market Manipulation
Celsius Network has filed a lawsuit against BitMex entities in a US Bankruptcy Court, alleging wrongful liquidations and market manipulation cost it and an investment fund $495 million. The complaint targets companies in Seychelles, Delaware, Hong Kong, and Bermuda linked to the cryptocurrency exchange.
The lawsuit claims that on March 12 and 13, 2020, BitMex's automated system took control of and sold positions held by Celsius and JST, an investment fund, which triggered a 'self-reinforcing liquidation cascade'. This process intensified market volatility, allegedly benefiting BitMex through fees charged on liquidated positions and its bitcoin-denominated insurance fund.
Celsius alleges that BitMex 'designed and operated a platform that turned market crises into a profit centre' and is seeking the return of 6,360.1666 bitcoin or its current value, as well as other damages, repayment of profits linked to the alleged conduct, legal costs, and potentially trebled damages.